It is only natural to want to protect your children from worry about your financial situation. However, don’t underestimate their ability to pick up on your stress no matter how hard you try to conceal it.
Household finances may be an adult worry, but this doesn't mean that your children should be left out of the loop. The nature of any discussion will vary depending on the age of your children.
With so much of the news dominated by ‘the recession’ your children will no doubt be aware of the downturn but may not have a good understanding of what it means. Encourage your children to ask questions, and help them to find the answers (even if you don’t know them immediately yourself).
If you are struggling financially try to involve your children in appropriate decision making, helping them to understand the value of money. Children often don’t think about where money comes from. Why not share your household budget with them? Demonstrating the amount of money that is required for essentials, and how your income is stretched, will help them to appreciate any paid-for treat all the more.
“The younger two seem to think money grows on trees. One of the benefits of the recession might be that you can talk to children about budgets.”
Giving your children some responsibility can help them to learn about managing finances, which will hold them in good stead for the future. Encouraging them to earn their pocket money by doing jobs around the house will help teach the value of both family and work.
The satisfaction of buying a toy or gadget after saving up for it, is ultimately more rewarding than instant gratification. It will also help instil good principles for later in life.
Remember the time you spend with your children is more valuable than any gift.